According to analysts of the Economic Security Bureau in 2023, companies did not pay UAH 1.3 billion in VAT when using the privilege for the distribution of Ukrainian-language content. Of this amount UAH 176 million was not paid by companies that do not sell paper, e-books or other content.

Only 21% of the companies that took advantage of the privilege have the appropriate main KVED. That is they are engaged in activities related to the distribution of such products.

The non-main KVEDs include: information and telecommunications - 20%, manufacturing - 17%, wholesale and retail trade, repair of motor vehicles and motorcycles - 15%.

Recently the detectives of the ESBU exposed a chain of household appliances stores for evading more than UAH 57 million in taxes by misusing the aforementioned benefit. Since the fall of 2023, analysts have observed a similar trend in the work of several other store chains.

As a reminder the tax exemption was introduced to encourage the popularization of Ukrainian-language content. A group of MPs registered a draft law on the relevant amendments to the Tax Code in 2021.

In 2022, the Law of Ukraine "On Amendments to the Tax Code of Ukraine on Exemption from Value Added Tax on the Supply of Ukrainian-Language Audiobooks" was adopted.

However in practice due to the imperfection of the aforementioned legislative norms some companies have started to use the tax exemption to evade taxes.

Analysts of the Economic Security Bureau continue to investigate the activities of companies that may have misused this benefit and prepare proposals to eliminate possible risks in its application. At the same time following the launch of the ESBU investigation the State Tax Service also started relevant inspections of retailers.